According to a Department of Justice press release, a Pennsylvania businessman recently pleaded guilty to filing false tax returns. This story is important for those taxpayers who believe that they are too small of a fish in a large ocean to be criminally pursued by the IRS or the Department of Justice. If you have failed to file a tax return for one or more years or have taken a position on a tax return that could not be defended upon an audit or criminal tax investigation, you should strongly consider seeking the assistance of an experienced tax defense attorney.
Court records reveal that Jordan Richter was the owner and operator of Diamond Spot Media LLC. His business activities involved selling marketing services to stock promoters. Prosecutors alleged that between 2012 and 2014, Richter inflated his business expenses in order to reduce his overall tax liability. This resulted in the filing of false partnership tax returns for his business and in turn, the filing of false individual tax returns.
Prosecutors and investigators estimate that Richter’s illegal activity resulted in a tax loss of approximately $100,000. Sentencing is scheduled for March of 2021. Richter faces up to three years in prison for each count of filing a false tax return. Additionally, Richter will likely be ordered to serve a period of supervised release. Finally, he will likely be required to pay restitution to the IRS representing the tax loss that he caused.
This story is a reminder that the IRS and Department of Justice do not only go after those who cause millions of dollars of tax loss. The defendant in the story above caused a tax loss of only $100,000. Such amount is relatively small when considering the number of taxpayers who have skimmed income or overstated deductions. No matter whether your business is large or small, the IRS and Department of Justice will not hesitate to pursue a criminal investigation or charges if tax laws have been broken.
If you have failed to file a tax return for one or more years or have been untruthful about the true amount of income or deduction respectfully earned or incurred, it is critical to understand that there is no fish that is too small to garner the attention of the IRS and their criminal investigators. An experienced tax defense attorney can assist you determine the best method to come into compliance with the IRS or state taxing authority. One of the most valuable benefits of hiring a tax attorney is never having to go up against the tax authorities alone.
Note: As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the tax fraud (including a pattern of non-filed returns) through a domestic or offshore voluntary disclosurebefore the IRS has started an audit or criminal tax investigation / prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply.
It is imperative that you hire an experienced and reputable criminal tax defense attorney to take you through the voluntary disclosure process. Only an Attorney has the Attorney Client Privilege and Work Product Privileges that will prevent the very professional that you hire from being potentially being forced to become a witness against you, especially where they prepared the returns that need to be amended, in a subsequent criminal tax audit, investigation or prosecution.
Moreover, only an Attorney can enter you into a voluntary disclosure without engaging in the unauthorized practice of law (a crime in itself). Only an Attorney trained in Criminal Tax Defense fully understands the risks and rewards involved in voluntary disclosures and how to protect you if you do not qualify for a voluntary disclosure.
As uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys, KovelCPAs and EAs, our firm provides a one stop shop to efficiently achieve the optimal and predictable results that simultaneously protect your liberty and your net worth. See our Testimonials to see what our clients have to say about us!
Regardless of your business or estate needs, the professionals at the Tax Law Offices of David W. Klasing are here for you. We are open for business and our team will help ensure that your business is too. Contact the Law Offices of David W. Klasing today to discuss your business with one of our professionals.
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